Nigerians may soon see a drop in fuel prices as the Dangote Refinery and other local refineries begin full operations, according to the National Institute for Policy and Strategic Studies.
Currently, fuel sells for around ₦930 per litre in many parts of the country, following the removal of subsidy.
However, the Director-General of NIPSS, Ayo Omotayo, has assured Nigerians that prices will soon reduce.
“We are buying fuel at a higher price now, but if we continue with what we are doing, fuel will come down. We expect it to drop as low as ₦750 before the end of the year,” Omotayo said on Tuesday during an interview on Channels Television’s The Morning Brief.
Omotayo explained that local production will help reduce Nigeria’s dependence on imported fuel.
“With the removal of subsidy, Dangote Refinery is coming on board. The Port Harcourt refinery has been working continuously for 110 days. As more of our refineries start production, we will become a net exporter of fuel in the long run,” he added.
He also mentioned that the foreign exchange rate could improve, saying, “We believe the exchange rate will drop to about 1.3 before the end of the year.”
President Bola Tinubu removed the fuel subsidy upon taking office, ending a system where the government spent large amounts to keep fuel prices low. The move caused fuel prices to rise sharply, leading to financial hardship for many Nigerians.
Despite this, Omotayo defended the policy, saying, “For us at NIPSS, it was a very timely step by Mr. President. Nigeria was on the verge of collapse due to subsidies. We were even subsidizing fuel as far as Burkina Faso and Sierra Leone. Tough decisions had to be made.”
While many Nigerians have struggled with the high cost of fuel, Omotayo believes the sacrifices will pay off in the future.
“The gains may seem small now, but in the long run, Nigerians will benefit,” he said.
